Saturday, May 8, 2010

Hotel Loans, Fraud, Contribute to Alpharetta Bank Failure

A fraud scheme orchestrated by a "dirty insider" and a Florida hotel developer contributed to the collapse of an Alpharetta bank that had assets totaling more than $1 billion, federal authorities said.

An indictment unsealed Friday alleges bribery, insider trading and enough money in fraudulent loans that the developer could buy his own private island in the Bahamas. It says Integrity Bank, in one of Georgia's largest bank failures, suffered $80 million in losses because of the scheme.

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